Fixed deposits or term deposits offered by banks are popular among customers because of the simple reason that they fetch higher interest rates than other savings schemes. Another reason for the popularity of bank fixed deposits is the convenience with which they can be created. Banks offer online options to create fixed deposits. So these days creation of a bank fixed deposit does not even require the customer to physically visit a bank. Also fixed deposit interest rates are fixed over specific tenures. Thus, your income on fixed deposits is guaranteed even in volatile times.
Besides, fixed deposit interest rates are higher than savings accounts'. Normal savings accounts offer interest rates between 3-4 per cent usually. Fixed deposits, however, offer much higher interest rates than savings accounts.
However, income earned of fixed deposits that is, the interest accrued on fixed deposits, is taxable. Fixed deposit interest is tax-free until a certain threshold, after which it is charged as per the current guidelines of the Income Tax Act. After the interest earned exceeds Rs 10,000, tax is deducted at source. TDS or tax deducted at source is deducted even if the fixed deposit amount has not yet been paid to the customer.
A few exemptions are granted as per Section 80C of the Act but in that case, fixed deposit needs to be locked-in for a period of five or 10 years.
Given below are fixed deposit interest rates offered by State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda (BoB):
Fixed deposit interest rates of State Bank of India (SBI) (Below Rs 1 crore)
The following fixed deposit interest rates came into effect on May 28, said SBI.
| Tenors | Interest rate (in per cent) for public w.e.f. 28.05.2018 | Interest rate for senior citizens w.e.f. 28.05.2018 |
|---|---|---|
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 6.65 | 7.15 |
| 2 years to less than 3 years | 6.65 | 7.15 |
| 3 years to less than 5 years | 6.7 | 7.2 |
| 5 years and up to 10 years | 6.75 | 7.25 |
| (Source: sbi.co.in) | ||
Fixed Deposit interest rates of HDFC Bank
Domestic / NRO / NRE Fixed Deposits
The following fixed deposit interest rates are applicable from July 6, 2018:
| Rate of Interest (% p.a.) w.e.f July 6, 2018 | ||
|---|---|---|
| Tenure | Interest rate for general public | Interest rate for senior citizen |
| 7 - 14 days | 3.50% | 4.00% |
| 15 - 29 days | 4.25% | 4.75% |
| 30 - 45 days | 5.75% | 6.25% |
| 46 - 60 days | 6.25% | 6.75% |
| 61 - 90 days | 6.25% | 6.75% |
| 91 days - 6 months | 6.25% | 6.75% |
| 6 months 1 day- 6 months 3 days | 6.35% | 6.85% |
| 6 months 4 days | 6.35% | 6.85% |
| 6 months 5 days- 9 months | 6.40% | 6.90% |
| 9 months 1 day- 9 months 3 days | 6.40% | 6.90% |
| 9 months 4 days | 6.40% | 6.90% |
| 9 months 5 days - 9 months 15 days | 6.40% | 6.90% |
| 9 months 16 days | 6.40% | 6.90% |
| 9 months 17 days < 1 Year | 6.40% | 6.90% |
| 1 Year | 6.85% | 7.35% |
| 1 year 1 day - 1 year 3 days | 6.65% | 7.15% |
| 1 year 4 days | 6.65% | 7.15% |
| 1 year 5 days - 1 Year 15 Days | 6.65% | 7.15% |
| 1 Year 16 days | 6.65% | 7.15% |
| 1 year 17 days - 2 Years | 7.00% | 7.50% |
| 2 years 1day - 2 Years 15 days | 7.00% | 7.50% |
| 2 Years 16 days | 7.00% | 7.50% |
| 2 years 17 days - 3 Years | 7.00% | 7.50% |
| 3 years 1day - 5 years | 7.00% | 7.50% |
| 5 Years 1 Day - 8 Years | 6.00% | 6.50% |
| 8 Years 1 Day - 10 Years | 6.00% | 6.50% |
| (Source: hdfcbank.com) | ||
(Also Read: Fixed Deposit Interest Rates Of This Bank Are Better Than SBI's)
Fixed deposit interest rates of ICICI Bank
Interest rates on Domestic, NRO & NRE deposits (Less than Rs 1 crore)
| Rate of Interest (% p.a.) w.e.f June 07, 2018 | ||
|---|---|---|
| Tenure | General public | Senior Citizen |
| 7 days to 14 days | 4 | 4.5 |
| 15 days to 29 days | 4.25 | 4.75 |
| 30 days to 45 days | 5.5 | 6 |
| 46 days to 60 days | 5.75 | 6.25 |
| 61 days to 90 days | 6 | 6.5 |
| 91 days to 120 days | 6 | 6.5 |
| 121 days to 184 days | 6 | 6.5 |
| 185 days to 289 days | 6.25 | 6.75 |
| 290 days to less than 1 year | 6.5 | 7 |
| 1 year to 389 days | 6.6 | 7.1 |
| 390 days to 2 years | 6.75 | 7.25 |
| 2 years 1 day upto 5 years | 7 | 7.5 |
| 5 years 1 day upto 10 years | 7 | 7.5 |
| 5 Years Tax saver FD(Max upto Rs. 1.50 lac) | 7 | 7.5 |
| (Source: icicibank.com) | ||
(Also Read: Interest Rates On Fixed Deposits, Recurring Deposits, Savings Accounts Of SBI, ICICI Bank, HDFC Bank)
Fixed deposit interest rates of Bank of Baroda (BoB)
For Domestic & NRO fixed deposits [Per Annum] [Fresh & Renewal] [Callable] (ROI in %)
- Below Rs. One Crore, according to bankofbaroda.com:
| Tenors | Below Rs 1 Cr. (w.e.f. 14.06.18) |
|---|---|
| 7 days to 14 days | 4.25 |
| 15 days to 45 days | 4.75 |
| 46 days to 90 days | 5 |
| 91 days to 180 days | 5.5 |
| 181 days to 270 days | 6.25 |
| 271 days & above and less than 1 year | 6.35 |
| 1 year | 6.6 |
| Above 1 year to 400 days | 6.7 |
| Above 400 days and upto 2 Years | 6.7 |
| Above 2 Years and upto 3 Years | 6.6 |
| Above 3 Years and upto 5 Years | 6.7 |
| Above 5 Years and upto 10 Years | 6.6 |
Company fixed deposits offer much better returns than bank fixed deposits but are also riskier than bank FDs.
Small finance banks' fixed deposit interest rates are as high as 9 per cent.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
